Equity crowdfunding: anything to celebrate?

The development of equity crowdfunding over the last 10 years has been accompanied by many successes and achievements, but also failures. At the same time, it still faces many challenges if it wants to become mainstream in entrepreneurial finance. These challenges are particularly severe in Continen...

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Bibliographic Details
Published in:Venture capital (London) 2019-01, Vol.21 (1), p.65-74
Main Author: Schwienbacher, Armin
Format: Article
Language:English
Subjects:
Bank technology
Crowdfunding
Entrepreneurial finance
equity finance
Finance
fintech
Investors
Profitability
Risk adjustment
Startups
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Summary:The development of equity crowdfunding over the last 10 years has been accompanied by many successes and achievements, but also failures. At the same time, it still faces many challenges if it wants to become mainstream in entrepreneurial finance. These challenges are particularly severe in Continental Europe. This article reviews achievements made the last 10 years and discusses important challenges that remain to be solved such as delivering appropriate risk-adjusted returns to investors, enhancing platforms' own profitability and enabling exit of investors from startups.
ISSN:1369-1066
1464-5343
DOI:10.1080/13691066.2018.1559010